Moscow, Russia – May 28, 2010 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces its Board’s dividend recommendation.

On May 28, 2010, Mechel’s Board of Directors recommended to the annual general shareholders’ meeting annual dividend of 1.09 rubles per one ordinary share (approximately $0.035 per ADR)* for the 2009 fiscal year. Also Mechel’s Board recommended annual dividend of 3.29 rubles per one preferred share (about $0.11 per one preferred share and $0.055 per one preferred American Depositary Share)*.

The total dividend the Board recommended to the annual general shareholders’ meeting would amount to 453,735,112.05 rubles (about $14.7 million)* for ordinary shares. The total dividend for preferred shares is 456,510,250.35 rubles (about $14.8 million)*. This dividend payment amount is in line with Mechel OAO’s Charter provision regarding preferred shares.

According to the Board’s decision dividend payment will be in cash by wire transfer not later than December 31, 2010.

The record date for the Mechel’s share, preferred share and ADR-holders entitled to participate in the annual general shareholders’ meeting and to receive dividends is May 24, 2010. The annual general shareholders’ meeting will be held on June 30, 2010, at the address: 1 Krasnoarmeyskaya Ul., Moscow, Russian Federation.

* According to the Russian Central Bank exchange rate of 30.8786 RUR/$ as of May 28, 2010.